SEBI has barred Franklin Templeton AMC from launching any debt scheme for two years. The company has also been fined Rs 5 crore for discontinuing its six debt schemes last year. In its 100-page order, SEBI has asked the company to pay investment management and advisory charges for those six debt schemes. Refunded Rs 512 crore including interest earned. However, Franklin Templeton has said to challenge this decision of SEBI in the Securities Appellate Tribunal.
In its order, SEBI has banned Franklin Templeton’s former Asia-Pacific (APAC) region chief Vivek Kudva and his wife Rupa Securities from trading in the market for one year. SEBI has imposed a total on this couple
Seven crore fine has also been imposed. Both are alleged to have possessed highly sensitive information, before which they ‘encashed’ units of Franklin Templeton Mutual Fund worth 30.70 crores. They have also been ordered to deposit 22.64 crores from the redeemed units in an escrow account within 45 days. SEBI has also initiated action against several other officers including the Chief Executive Officer (CEO), Chief Compliance Officer and Directors of Franklin Templeton AMC.